In June, South Korea's inflation rate accelerated to a 30-month high.

In June, South Korea's overall inflation rate accelerated to a 30-month high, surpassing 3% for the second consecutive month, well above the country's central bank target of 2%. The high inflation in South Korea is expected to provide more reasons for the central bank to tighten monetary policy at its interest rate meeting later this month. South Korea's Statistics Office said on Thursday that the benchmark consumer price index rose 3.2% year-on-year in June, the fastest pace since December 2023; up from 3.1% in May. This latest reading is in line with the median forecast of seven economists surveyed by the media. On a monthly basis, consumer prices rose 0.1% in June, also matching the survey results. In May, consumer prices rose by 0.5% on a monthly basis. The core CPI, which excludes volatile food and energy prices, rose 2.5% year-on-year in June, unchanged from the previous month. South Korea's Statistics Office data shows that oil product prices led the way, with gasoline and diesel prices rising sharply by 23% and 34% respectively year-on-year in June. The data indicates that despite the easing of tensions in the oil-rich Middle East region due to the US-Iran ceasefire agreement, the cumulative rise in raw material costs and the weakening of the South Korean won continue to transmit pressure to the entire economy.